Shares of Maxar Technologies’ tumbled 14.9% on Thursday after the company reported disappointing fourth quarter results, which was soon followed by restructuring news along with dividend cuts to $0.01/quarter, down from $0.02764.
The company reported a 9% fall in the total revenue owing to drops in Space Systems. This was somewhat balanced out by $213 million gains in the Imagery revenue from the U.S. government. Segment-wise, revenue for the quarter was Space Systems $243 million, Imagery $213 million and Services $68 million.
Total EBITDA for the quarter stood at $84 million compared to $116 million in the previous quarter. EBITDA margin also saw a drop of more than 400 bps during the quarter and stood at 17% compared to 21.3%, largely owing to the declines in the Space Systems segment. The final EBITDA figures segment wise stand as: Space Systems -$29 million, Imagery $122 million and Services $6 million.
As part of its restructuring plans, the company will sell its Palo Alto facility as well as amend its credit agreement as steps to strengthen the balance sheet.
It has also decided to continue operating the GEO Comsat business to right size the organization to better align its costs with revenue.